MIAMI—Miami's industrial market keeps hitting on all cylinders. Some, though, say there are challenges ahead.
GlobeSt.com caught up with Ernesto Cambo, principal of cpf investments, developer of AVE Aviation & Commerce Center in Opa-Locka, to get his proverbial two cents on the region's industrial market. He told us we have entered a new year where, again, nothing but positive activity—and conversations—will dominate South Florida's industrial space.
“The reign of high demand continues with prime conditions for absorption, and vacancy remains amongst the lowest in the US at below 5%,” Cambo says. “The global economy is closely eyeing Miami as a key hub for trade, new investment and workforce growth, making the dynamics attractive for prosperity in the sector.”
What about all the hubbub around e-commerce? Cambo agrees there is no doubt that e-commerce is a direct indicator of increased consumer demand.
He also tossed out some numbers. In the third quarter of 2017, domestic e-commerce rose more than 15% year-over-year, according to the US Census Bureau.
“While residential construction will naturally slow after an all-time high, the industrial market will continue to deliver new product for the next 12 months,” Cambo says. “That's especially true in the active submarkets of Medley, Hialeah Gardens, Miami Gardens and Opa-Locka.”
According to Cushman & Wakefield's Quarter 4 2017 Industrial Market Report, 3 million square feet was delivered to the market last year, with 29% preleased. And the industrial pipeline was more than 3.17 million square feet, year-end, with a total of 30% preleased.
“The competitive nature of the market will squeeze Miami-Dade's industrial zone, establishing most available land west of I-75 and north of Northwest 138 Street,” Cambo says. “The activity is pushing against Miami's Urban Development Boundary (UBD), demonstrating, with all other factors, a robust climate for the next 12 months.”
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